Kathleen
Brooks, research director at City Index, says in an email on
Thursday: "The market seems to be ignoring some fairly solid
economic data, progress, albeit slow, in the Brexit talks, and a
weaker dollar and euro in favour of politics.

"After Theresa May's speech at the Tory party conference on
Wednesday, there are rumours that she will be asked (forced) to
step down by her own party. The prospect of a leaderless UK in
the middle of the Brexit process, or even worse, a Prime Minister
Boris, are right to unnerve sterling traders."

David Madden, an analyst at CMC Markets, says: "Downing Street
declared that resignation is not an issue for Mrs May. The fact
the government had to make that statement says a lot."